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of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
US OUTLOOK/OPINION
ING's read of the July inflation report was that "the details show a broadening out of price pressures".
- "Relatively soft" readings in used car prices, apparel and airfares were "the main reason for the downside surprise on the core inflation figure".
- But they saw "most other components either reporting the same MoM increase as last month or higher. For example, recreation showed a big acceleration (0.6% MoM), medical care posted its fastest increase since February (0.3%) and housing costs posted another 0.4% MoM increase."
- ING maintains its view that inflation is unlikely to fade quickly, as "the stimulus fuelled economy is booming" with demand outpacing supply capacity.
- Housing costs are also likely to contribute strongly, being "the story to watch through the second half of this year and could add nearly a full percentage point to annual inflation on their own."
- This should pave the way for the Fed to hike rates in late 2022, ING thinks.
Source: ING, Macrobond
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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